Helen of Troy Ltd (HELE) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Helen of Troy's EV/EBITDA of 20.1 is above its 5-year median of 12.8.

P/B below the industry

Helen of Troy's price-to-book of 1.04 is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 3.01.

Trading below fair value

The share price of $37.98 is below our fair value estimate of $47.17.

Margin of safety under 20%

The price is 19.5% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -4.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 0.3% over the last twelve months; the Electronic and Other Electrical Equipment and Components, except Computer Equipment median is -0.2%.

Guidance raised

Helen of Troy raised its Fiscal 2027 Consolidated Net Sales outlook on Oct 8, 2026.

Gross margin improving

Gross margin was 47.4% over the last twelve months, against 47.3% a year earlier.

Return on equity under 15%

Return on equity was -11.1% over the last twelve months and averaged -5.3% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 1.1%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Helen of Troy's return on equity of -11.1% is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -3.3%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -5.4% over the last twelve months, against a 5-year average of -3.7%.

Net margin below the industry

Helen of Troy's net margin of -5.4% is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -3.1%.

High debt

Debt is 78.8% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 27.7% five years ago to 78.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 26.7% of total debt.

Interest not well covered

Operating income covers interest expense 0.5 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.65 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 1.84; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Helen of Troy has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.